Abstract

The main purpose of this research is to examine intellectual capital performance of listed district of commercial bank of Ethiopia and its impact on service quality. The researchers used multiple regression analysis to ascertain the extent that intellectual capital components indices affect service quality of the targeted bank district. This study adopts a deduction approach and a quantitative method as the research methodology. Empirical findings of the study showed that human and customer capital have a positive and significant effect on service quality. However, structural capital has statistically weak relationship with service quality. Keywords: intellectual capital, human capital, structural capital, customer capital, service quality DOI: 10.7176/RJFA/11-3-04 Publication date: February 29 th 2020

Highlights

  • Nowadays, companies visualize themselves as learning organizations and understand that intellectual capital assets can enhance innovation and play a vital role in improving business performance

  • Sample and data collection Nearly 48 commercial bank of Ethiopia branches from SNNPR district were selected as a sample through using judgmental sampling techniques

  • As indicated on the above table 2, out of three components of intellectual capital only two are significant with service quality at the level of p < .01 whereas structural capital is significant at the level of p

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Summary

Introduction

Companies visualize themselves as learning organizations and understand that intellectual capital assets can enhance innovation and play a vital role in improving business performance. Knowledge based intangibles in particular are recognized to be central to the value creation process Such assets have increasingly been referred to by a new term that of intellectual capital (Masoud et al, 2014) and it is a new issue which has been brought up theoretically in international commercial environment recently (Pourkiani et al, 2014).That’s why, its explanation is not same in different studies. It has become significant resource for growth of economy and social prosperity and the wealth of individuals, organizations, regions and countries is associated directly to their intellectual capital utilization (Chao et al, 2015). It is one of the issues that have been attempted by many researchers for its significance and due to its relative newness (Sharabati et al, 2013)

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